Weyerhaeuser Company | Exhibit 99.2 | ||||||||||
Q1.2019 Analyst Package | |||||||||||
Preliminary results (unaudited) | |||||||||||
Consolidated Statement of Operations | |||||||||||
Q4 | Q1 | ||||||||||
in millions | December 31, 2018 | March 31, 2019 | March 31, 2018 | ||||||||
Net sales | $ | 1,636 | $ | 1,643 | $ | 1,865 | |||||
Costs of sales | 1,345 | 1,322 | 1,348 | ||||||||
Gross margin | 291 | 321 | 517 | ||||||||
Selling expenses | 22 | 21 | 23 | ||||||||
General and administrative expenses | 82 | 89 | 78 | ||||||||
Research and development expenses | 2 | 1 | 2 | ||||||||
Other operating costs, net | 8 | 36 | 10 | ||||||||
Operating income | 177 | 174 | 404 | ||||||||
Non-operating pension and other postretirement benefit costs | (218 | ) | (470 | ) | (24 | ) | |||||
Interest income and other | 24 | 10 | 12 | ||||||||
Interest expense, net of capitalized interest | (97 | ) | (107 | ) | (93 | ) | |||||
Earnings (loss) before income taxes | (114 | ) | (393 | ) | 299 | ||||||
Income taxes | 21 | 104 | (30 | ) | |||||||
Net earnings (loss) | $ | (93 | ) | $ | (289 | ) | $ | 269 | |||
Per Share Information | |||||||||||
Q4 | Q1 | ||||||||||
December 31, 2018 | March 31, 2019 | March 31, 2018 | |||||||||
Earnings (loss) per share, basic and diluted | $ | (0.12 | ) | $ | (0.39 | ) | $ | 0.35 | |||
Dividends paid per common share | $ | 0.34 | $ | 0.34 | $ | 0.32 | |||||
Weighted average shares outstanding (in thousands): | |||||||||||
Basic | 748,694 | 746,603 | 756,815 | ||||||||
Diluted | 750,025 | 746,603 | 759,462 | ||||||||
Common shares outstanding at end of period (in thousands) | 746,391 | 744,767 | 756,700 | ||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)* | |||||||||||
Q4 | Q1 | ||||||||||
in millions | December 31, 2018 | March 31, 2019 | March 31, 2018 | ||||||||
Net earnings (loss) | $ | (93 | ) | $ | (289 | ) | $ | 269 | |||
Non-operating pension and other postretirement benefit costs | 218 | 470 | 24 | ||||||||
Interest income and other | (24 | ) | (10 | ) | (12 | ) | |||||
Interest expense, net of capitalized interest | 97 | 107 | 93 | ||||||||
Income taxes | (21 | ) | (104 | ) | 30 | ||||||
Operating income | 177 | 174 | 404 | ||||||||
Depreciation, depletion and amortization | 125 | 123 | 120 | ||||||||
Basis of real estate sold | 44 | 48 | 12 | ||||||||
Special items included in operating income | — | 20 | 8 | ||||||||
Adjusted EBITDA* | $ | 346 | $ | 365 | $ | 544 | |||||
*Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold, and special items. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. |
Page 1 of 8
Weyerhaeuser Company | Total Company Statistics | ||||||||||
Q1.2019 Analyst Package | |||||||||||
Preliminary results (unaudited) | |||||||||||
Special Items Included in Net Earnings (Income Tax Affected) | |||||||||||
Q4 | Q1 | ||||||||||
in millions | December 31, 2018 | March 31, 2019 | March 31, 2018 | ||||||||
Net earnings (loss) | $ | (93 | ) | $ | (289 | ) | $ | 269 | |||
Gain on sale of nonstrategic assets | (10 | ) | — | — | |||||||
Legal charge | — | 15 | — | ||||||||
Environmental remediation charge | — | — | 21 | ||||||||
Pension settlement charges | 152 | 345 | — | ||||||||
Product remediation charges (recoveries), net | — | — | (15 | ) | |||||||
Tax adjustment | 21 | — | — | ||||||||
Early extinguishment of debt charge(1) | — | 9 | — | ||||||||
Net earnings before special items | $ | 70 | $ | 80 | $ | 275 | |||||
Q4 | Q1 | ||||||||||
December 31, 2018 | March 31, 2019 | March 31, 2018 | |||||||||
Net earnings (loss) per diluted share | $ | (0.12 | ) | $ | (0.39 | ) | $ | 0.35 | |||
Gain on sale of nonstrategic assets | (0.01 | ) | — | — | |||||||
Legal charge | — | 0.02 | — | ||||||||
Environmental remediation charge | — | — | 0.03 | ||||||||
Pension settlement charges | 0.20 | 0.47 | — | ||||||||
Product remediation charges (recoveries), net | — | — | (0.02 | ) | |||||||
Tax adjustment | 0.03 | — | — | ||||||||
Early extinguishment of debt charge(1) | — | 0.01 | — | ||||||||
Net earnings per diluted share before special items | $ | 0.10 | $ | 0.11 | $ | 0.36 |
Selected Total Company Items | |||||||||||
Q4 | Q1 | ||||||||||
in millions | December 31, 2018 | March 31, 2019 | March 31, 2018 | ||||||||
Pension and postretirement costs: | |||||||||||
Pension and postretirement service costs | $ | 9 | $ | 8 | $ | 10 | |||||
Non-operating pension and other postretirement benefit costs | 218 | 470 | 24 | ||||||||
Total company pension and postretirement costs | $ | 227 | $ | 478 | $ | 34 | |||||
(1) During first quarter 2019, we recorded a $12 million pretax ($9 million after-tax) charge related to the early extinguishment of debt. |
Page 2 of 8
Weyerhaeuser Company | |||||||||||
Q1.2019 Analyst Package | |||||||||||
Preliminary results (unaudited) | |||||||||||
Consolidated Balance Sheet | |||||||||||
December 31, 2018 | March 31, 2019 | March 31, 2018 | |||||||||
in millions | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 334 | $ | 259 | $ | 598 | |||||
Receivables, less discounts and allowances | 337 | 398 | 481 | ||||||||
Receivables for taxes | 137 | 163 | 24 | ||||||||
Inventories | 389 | 451 | 445 | ||||||||
Prepaid expenses and other current assets | 152 | 141 | 118 | ||||||||
Current restricted financial investments held by variable interest entities | 253 | 362 | 253 | ||||||||
Total current assets | 1,602 | 1,774 | 1,919 | ||||||||
Property and equipment, net | 1,857 | 1,917 | 1,573 | ||||||||
Construction in progress | 136 | 102 | 275 | ||||||||
Timber and timberlands at cost, less depletion | 12,671 | 12,586 | 12,888 | ||||||||
Minerals and mineral rights, less depletion | 294 | 291 | 306 | ||||||||
Deferred tax assets | 15 | 18 | 244 | ||||||||
Other assets | 312 | 444 | 318 | ||||||||
Restricted financial investments held by variable interest entities | 362 | — | 362 | ||||||||
Total assets | $ | 17,249 | $ | 17,132 | $ | 17,885 | |||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current maturities of long-term debt | $ | 500 | $ | — | $ | — | |||||
Current debt (nonrecourse to the company) held by variable interest entities | 302 | 302 | 209 | ||||||||
Borrowings on line of credit | 425 | 245 | — | ||||||||
Accounts payable | 222 | 243 | 245 | ||||||||
Accrued liabilities | 490 | 411 | 457 | ||||||||
Total current liabilities | 1,939 | 1,201 | 911 | ||||||||
Long-term debt | 5,419 | 6,156 | 5,928 | ||||||||
Long-term debt (nonrecourse to the company) held by variable interest entities | — | — | 302 | ||||||||
Deferred tax liabilities | 43 | 34 | — | ||||||||
Deferred pension and other postretirement benefits | 527 | 542 | 1,454 | ||||||||
Other liabilities | 275 | 398 | 299 | ||||||||
Total liabilities | 8,203 | 8,331 | 8,894 | ||||||||
Total equity | 9,046 | 8,801 | 8,991 | ||||||||
Total liabilities and equity | $ | 17,249 | $ | 17,132 | $ | 17,885 |
Page 3 of 8
Weyerhaeuser Company | |||||||||||
Q1.2019 Analyst Package | |||||||||||
Preliminary results (unaudited) | |||||||||||
Consolidated Statement of Cash Flows | |||||||||||
Q4 | Q1 | ||||||||||
in millions | December 31, 2018 | March 31, 2019 | March 31, 2018 | ||||||||
Cash flows from operations: | |||||||||||
Net earnings (loss) | $ | (93 | ) | $ | (289 | ) | $ | 269 | |||
Noncash charges (credits) earnings: | |||||||||||
Depreciation, depletion and amortization | 125 | 123 | 120 | ||||||||
Basis of real estate sold | 44 | 48 | 12 | ||||||||
Deferred income taxes, net | (39 | ) | (123 | ) | 10 | ||||||
Pension and other postretirement benefits | 227 | 478 | 34 | ||||||||
Share-based compensation expense | 11 | 9 | 9 | ||||||||
Change in: | |||||||||||
Receivables, less allowances | 117 | (77 | ) | (83 | ) | ||||||
Receivables and payables for taxes | 6 | (31 | ) | 5 | |||||||
Inventories | (5 | ) | (60 | ) | (66 | ) | |||||
Prepaid expenses and other current assets | (11 | ) | (5 | ) | (5 | ) | |||||
Accounts payable and accrued liabilities | (21 | ) | (82 | ) | (173 | ) | |||||
Pension and postretirement benefit contributions and payments | (26 | ) | (14 | ) | (16 | ) | |||||
Other | (43 | ) | 9 | 20 | |||||||
Net cash from (used in) operations | $ | 292 | $ | (14 | ) | $ | 136 | ||||
Cash flows from investing activities: | |||||||||||
Capital expenditures for property and equipment | $ | (130 | ) | $ | (41 | ) | $ | (61 | ) | ||
Capital expenditures for timberlands reforestation | (14 | ) | (18 | ) | (20 | ) | |||||
Proceeds from note receivable held by variable interest entities | — | 253 | — | ||||||||
Other | (32 | ) | 18 | 5 | |||||||
Cash from (used in) investing activities | $ | (176 | ) | $ | 212 | $ | (76 | ) | |||
Cash flows from financing activities: | |||||||||||
Cash dividends on common shares | $ | (254 | ) | $ | (254 | ) | $ | (242 | ) | ||
Net proceeds from issuance of long-term debt | — | 739 | — | ||||||||
Payments of long-term debt | — | (512 | ) | (62 | ) | ||||||
Proceeds from borrowing on line of credit | 425 | 245 | — | ||||||||
Payments on line of credit | — | (425 | ) | — | |||||||
Payments on debt held by variable interest entities | (209 | ) | — | — | |||||||
Proceeds from exercise of stock options | — | 2 | 25 | ||||||||
Repurchases of common shares | (93 | ) | (60 | ) | — | ||||||
Other | 1 | (8 | ) | (7 | ) | ||||||
Cash from (used in) financing activities | $ | (130 | ) | $ | (273 | ) | $ | (286 | ) | ||
Net change in cash and cash equivalents | $ | (14 | ) | $ | (75 | ) | $ | (226 | ) | ||
Cash and cash equivalents at beginning of period | 348 | 334 | 824 | ||||||||
Cash and cash equivalents at end of period | $ | 334 | $ | 259 | $ | 598 | |||||
Cash paid during the period for: | |||||||||||
Interest, net of amount capitalized | $ | 73 | $ | 127 | $ | 105 | |||||
Income taxes | $ | 15 | $ | 50 | $ | 17 |
Page 4 of 8
Weyerhaeuser Company | Timberlands Segment | |||||||||||
Q1.2019 Analyst Package | ||||||||||||
Preliminary results (unaudited) | ||||||||||||
Segment Statement of Operations (1) | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Sales to unaffiliated customers | $ | 448 | $ | 431 | $ | 490 | ||||||
Intersegment sales | 128 | 125 | 142 | |||||||||
Total net sales | 576 | 556 | 632 | |||||||||
Costs of sales | 446 | 413 | 422 | |||||||||
Gross margin | 130 | 143 | 210 | |||||||||
Selling expenses | — | 1 | 1 | |||||||||
General and administrative expenses | 24 | 22 | 22 | |||||||||
Research and development expenses | 1 | 1 | 2 | |||||||||
Other operating income, net | (2 | ) | (1 | ) | (4 | ) | ||||||
Operating income and Net contribution to earnings | $ | 107 | $ | 120 | $ | 189 | ||||||
(1) In January 2019, we changed the way we report our Canadian Forestlands operations, which are primarily operated to supply Weyerhaeuser’s Canadian Wood Products manufacturing facilities. As a result, we no longer report related intersegment sales in the Timberlands segment and we will now record the minimal associated third-party log sales in the Wood Products segment. These collective transactions did not contribute any earnings to the Timberlands segment. We have conformed prior period presentation with the current period. | ||||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Operating income | $ | 107 | $ | 120 | $ | 189 | ||||||
Depreciation, depletion and amortization | 81 | 73 | 79 | |||||||||
Adjusted EBITDA* | $ | 188 | $ | 193 | $ | 268 | ||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Selected Segment Items | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Total decrease (increase) in working capital(2) | $ | (7 | ) | $ | (24 | ) | $ | (40 | ) | |||
Cash spent for capital expenditures | $ | (35 | ) | $ | (26 | ) | $ | (28 | ) | |||
(2) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined. | ||||||||||||
Segment Statistics(3) | ||||||||||||
Q4.2018 | Q1.2019 | Q1.2018 | ||||||||||
Third Party Net Sales (millions) | Delivered logs: | |||||||||||
West | $ | 221 | $ | 205 | $ | 266 | ||||||
South | 153 | 159 | 157 | |||||||||
North | 29 | 29 | 25 | |||||||||
Total delivered logs | 403 | 393 | 448 | |||||||||
Stumpage and pay-as-cut timber | 20 | 9 | 15 | |||||||||
Recreational and other lease revenue | 15 | 15 | 14 | |||||||||
Other revenue | 10 | 14 | 13 | |||||||||
Total | $ | 448 | $ | 431 | $ | 490 | ||||||
Delivered Logs Third Party Sales Realizations (per ton) | West | $ | 112.58 | $ | 106.92 | $ | 131.59 | |||||
South | $ | 34.38 | $ | 35.35 | $ | 34.83 | ||||||
North | $ | 57.27 | $ | 59.68 | $ | 60.79 | ||||||
Delivered Logs Third Party Sales Volumes (tons, thousands) | West | 1,958 | 1,920 | 2,019 | ||||||||
South | 4,417 | 4,499 | 4,510 | |||||||||
North | 497 | 494 | 404 | |||||||||
Fee Harvest Volumes (tons, thousands) | West | 2,463 | 2,385 | 2,443 | ||||||||
South | 6,849 | 6,492 | 6,751 | |||||||||
North | 620 | 627 | 549 | |||||||||
(3) Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes. |
Page 5 of 8
Weyerhaeuser Company | Real Estate, Energy & Natural Resources Segment | |||||||||||
Q1.2019 Analyst Package | ||||||||||||
Preliminary results (unaudited) | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Net sales | $ | 102 | $ | 118 | $ | 51 | ||||||
Costs of sales | 52 | 56 | 19 | |||||||||
Gross margin | 50 | 62 | 32 | |||||||||
General and administrative expenses | 7 | 7 | 7 | |||||||||
Operating income | 43 | 55 | 25 | |||||||||
Interest income and other | 1 | — | — | |||||||||
Net contribution to earnings | $ | 44 | $ | 55 | $ | 25 | ||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Operating income | $ | 43 | $ | 55 | $ | 25 | ||||||
Depreciation, depletion and amortization | 3 | 3 | 4 | |||||||||
Basis of real estate sold | 44 | 48 | 12 | |||||||||
Adjusted EBITDA* | $ | 90 | $ | 106 | $ | 41 | ||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Selected Segment Items | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Cash spent for capital expenditures | $ | — | $ | — | $ | — | ||||||
Segment Statistics | ||||||||||||
Q4.2018 | Q1.2019 | Q1.2018 | ||||||||||
Net Sales (millions) | Real Estate | $ | 81 | $ | 96 | $ | 34 | |||||
Energy and Natural Resources | 21 | 22 | 17 | |||||||||
Total | $ | 102 | $ | 118 | $ | 51 | ||||||
Acres Sold | Real Estate | 31,833 | 38,834 | 21,771 | ||||||||
Price per Acre | Real Estate | $ | 2,479 | $ | 2,424 | $ | 1,539 | |||||
Basis as a Percent of Real Estate Net Sales | Real Estate | 54 | % | 50 | % | 35 | % |
Page 6 of 8
Weyerhaeuser Company | Wood Products Segment | |||||||||||
Q1.2019 Analyst Package | ||||||||||||
Preliminary results (unaudited) | ||||||||||||
Segment Statement of Operations (1) | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Net sales | $ | 1,087 | $ | 1,094 | $ | 1,324 | ||||||
Costs of sales | 1,003 | 967 | 1,020 | |||||||||
Gross margin | 84 | 127 | 304 | |||||||||
Selling expenses | 20 | 19 | 21 | |||||||||
General and administrative expenses | 33 | 35 | 34 | |||||||||
Research and development expenses | 1 | — | — | |||||||||
Other operating costs (income), net | 4 | 4 | (21 | ) | ||||||||
Operating income and Net contribution to earnings | $ | 26 | $ | 69 | $ | 270 | ||||||
(1) In January 2019, we changed the way we report our Canadian Forestlands operations, which are primarily operated to supply Weyerhaeuser’s Canadian Wood Products manufacturing facilities. As a result, we will now record the minimal associated third-party log sales in the Wood Products segment. These transactions do not contribute any earnings to the Wood Products segment. We have conformed prior period presentation with the current period. | ||||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Operating income | $ | 26 | $ | 69 | $ | 270 | ||||||
Depreciation, depletion and amortization | 40 | 46 | 36 | |||||||||
Special items | — | — | (20 | ) | ||||||||
Adjusted EBITDA* | $ | 66 | $ | 115 | $ | 286 | ||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Segment Special Items Included in Net Contribution to Earnings (Pretax) | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Product remediation (charges) recoveries, net | $ | — | $ | — | $ | 20 | ||||||
Selected Segment Items | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Total decrease (increase) in working capital(2) | $ | 83 | $ | (155 | ) | $ | (226 | ) | ||||
Cash spent for capital expenditures | $ | (107 | ) | $ | (30 | ) | $ | (52 | ) | |||
(2) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment. | ||||||||||||
Segment Statistics | ||||||||||||
in millions, except for third party sales realizations | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Structural Lumber (volumes presented in board feet) | Third party net sales | $ | 427 | $ | 444 | $ | 569 | |||||
Third party sales realizations | $ | 388 | $ | 392 | $ | 498 | ||||||
Third party sales volumes(3) | 1,099 | 1,133 | 1,140 | |||||||||
Production volumes | 1,095 | 1,145 | 1,160 | |||||||||
Engineered Solid Section (volumes presented in cubic feet) | Third party net sales | $ | 121 | $ | 116 | $ | 129 | |||||
Third party sales realizations | $ | 2,139 | $ | 2,218 | $ | 2,088 | ||||||
Third party sales volumes(3) | 5.7 | 5.2 | 6.2 | |||||||||
Production volumes | 5.3 | 5.9 | 6.3 | |||||||||
Engineered I-joists (volumes presented in lineal feet) | Third party net sales | $ | 75 | $ | 70 | $ | 78 | |||||
Third party sales realizations | $ | 1,696 | $ | 1,709 | $ | 1,585 | ||||||
Third party sales volumes(3) | 44 | 41 | 49 | |||||||||
Production volumes | 37 | 44 | 56 | |||||||||
Oriented Strand Board (volumes presented in square feet 3/8") | Third party net sales | $ | 167 | $ | 160 | $ | 232 | |||||
Third party sales realizations | $ | 252 | $ | 223 | $ | 314 | ||||||
Third party sales volumes(3) | 665 | 717 | 739 | |||||||||
Production volumes | 691 | 729 | 734 | |||||||||
Softwood Plywood (volumes presented in square feet 3/8") | Third party net sales | $ | 42 | $ | 44 | $ | 50 | |||||
Third party sales realizations | $ | 396 | $ | 383 | $ | 438 | ||||||
Third party sales volumes(3) | 104 | 115 | 115 | |||||||||
Production volumes | 96 | 98 | 97 | |||||||||
Medium Density Fiberboard (volumes presented in square feet 3/4") | Third party net sales | $ | 39 | $ | 38 | $ | 43 | |||||
Third party sales realizations | $ | 835 | $ | 846 | $ | 839 | ||||||
Third party sales volumes(3) | 47 | 44 | 51 | |||||||||
Production volumes | 52 | 45 | 50 | |||||||||
(3) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. |
Page 7 of 8
Weyerhaeuser Company | Unallocated Items | |||||||||||
Q1.2019 Analyst Package | ||||||||||||
Preliminary results (unaudited) | ||||||||||||
Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and postretirement costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations. | ||||||||||||
Contribution to Earnings | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Unallocated corporate function and variable compensation expense | $ | (28 | ) | $ | (19 | ) | $ | (18 | ) | |||
Liability classified share-based compensation | 8 | (4 | ) | — | ||||||||
Foreign exchange gain (loss) | 5 | (3 | ) | (2 | ) | |||||||
Elimination of intersegment profit in inventory and LIFO | 24 | (5 | ) | (21 | ) | |||||||
Other | (8 | ) | (39 | ) | (39 | ) | ||||||
Operating income (loss) | 1 | (70 | ) | (80 | ) | |||||||
Non-operating pension and other postretirement benefit costs | (218 | ) | (470 | ) | (24 | ) | ||||||
Interest income and other | 23 | 10 | 12 | |||||||||
Net contribution to earnings (loss) | $ | (194 | ) | $ | (530 | ) | $ | (92 | ) | |||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Operating income (loss) | $ | 1 | $ | (70 | ) | $ | (80 | ) | ||||
Depreciation, depletion and amortization | 1 | 1 | 1 | |||||||||
Special items | — | 20 | 28 | |||||||||
Adjusted EBITDA* | $ | 2 | $ | (49 | ) | $ | (51 | ) | ||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Unallocated Special Items Included in Net Contribution to Earnings (Pretax) | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Environmental remediation insurance charge | $ | — | $ | — | $ | (28 | ) | |||||
Legal charge | — | (20 | ) | — | ||||||||
Special items included in operating income (loss) | — | (20 | ) | (28 | ) | |||||||
Pension settlement charges(1) | (200 | ) | (455 | ) | — | — | ||||||
Gain on sale of nonstrategic assets | 13 | — | — | |||||||||
Special items included in net contribution to earnings (loss) | $ | (187 | ) | $ | (475 | ) | $ | (28 | ) | |||
(1) First quarter 2019 includes a noncash pension settlement charge related to the transfer of pension assets and liabilities through the purchase of a group annuity contract. Fourth quarter 2018 includes a noncash pension settlement charge related to a lump sum offer for our U.S. qualified pension plan. | ||||||||||||
Unallocated Selected Items | ||||||||||||
in millions | Q4.2018 | Q1.2019 | Q1.2018 | |||||||||
Cash spent for capital expenditures | $ | (2 | ) | $ | (3 | ) | $ | (1 | ) |
Page 8 of 8